Lowell Resources Fund : LRT Monthly Update - December 2021

LRT.AX

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MONTHLY UPDATE

Lowell Resources Funds Management Ltd. ABN 36 006 769 982 AFSL 345674

December 2021

December 2021 Performance Summary:

Lowell Resources Fund (ASX: LRT)

The Lowell Resources Fund net asset value ('NAV') at the end of December 2021 was approximately $57.2m, compared to $57.1 million at the end of November.

The NAV per unit finished the month of December at $1.948/unit (vs $1.948/unit at 30 November 2021). The traded unit price of the ASX listed LRT units at month end was $1.75/unit. A further 54,789 units were issued as part of the DRP during the month (required as a result of some unit holder bank account details for cash distributions for year ended 30 June 2021).

For personal

FUND OVERVIEW

Investment

Lowell Resources Funds

Manager

Management Limited

Managed since

6 February 2004

ASX code

LRT

Income

Annual

distribution

FUND SNAPSHOT 31 December 2021

NAV per unit

$1.948

No. of Units on issue

29,354,614

Market Price (ASX)

$1.75 / unit

Net Asset Value

$57.2m

August 2021 Distribution

$0.15/unit

Market Capitalisation

$51.4m

Lowell Resources Fund NAV vs

3.50

ASX Junior Resources Index

3.25

(rebased to 1 at December 2019)

3.00

2.75

2.50

LRT

2.25

NAV

2.00

1.75

1.50

1.25

1.00

0.75

For personal use only

MONTHLY UPDATE

December 2021

Lowell Resources Funds Management Ltd. LRT

Fund Investment Actions - December 2021

In precious metals, the Fund boosted its holdings in ASX listed Australia-focused explorers Genesis Minerals, Great Northern Mining and Kingwest Resources.

In base metals, the Fund completed its very profitable exit from Centaurus Metals, as the company advances its feasibility studies on the Jaguar nickel sulphide project in Brazil.

In December, the Fund added to its position in ADX Energy, which is developing both conventional hydrocarbons as well as hydrogen-focused projects in Austria.

LRF COMMODITY EXPOSURE 31 DECEMBER

2021

Bauxite

Uranium Helium

0%

1%

3%

Mineral Sands

Fertilisers

Mining Services

1%

0%

Cash

3%

7%

Nickel

7%

Battery

4%

Gold & PGM

O&G50% 8%

Base Metals

14%

Silver REE

1% 1%

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MONTHLY UPDATE

Lowell Resources Funds Management Ltd. LRT

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Fund Top Holdings

Predictive Discovery (PDI.ASX) continued to

extend the depth of its 3.6Moz NE Bankan gold

deposit in Guinea, west Africa, with intercepts such

as 34m at 5.5 g/t Au from 441m. It also released

aircore drill results from new prospects including

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36m at 1.9g/t Au at the 800W zone and 22m at

12.1g/t Au at the SW Bankan area.

Musgrave Minerals (MGV.ASX) announced new

shallow high grade lodes at its 100% held Cue

project in WA, including 15m at 111g/t Au. High

grades were also returned from the Big Sky deposit

including 4m at 20g/t Au.

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De Grey Mining (DEG.ASX) announced extension

of the Diucon deposit to 550m depth, and high

grades at the Eagle deposit (53m at 5.8 g/t Au) at

the 9.0Moz Mallina gold project.

Azure Minerals (AZS.ASX) announced a new

discovery at the Skyline prospect at its 60% owned

Andover project in the Pilbara, WA. Assays are

awaited from multiple intersections of disseminated

Ni-Cu sulphides. At the VC-07 East deposit

mineralization was extended to at least 550m

depth.

Blue Star Helium (BNL.ASX) announced it had

received the long awaited approval for a permit to

drill the Enterprise helium well in Colorado.

Significant gas columns have been interpreted in

water wells at the Enterprise and Voyager

prospects, with up to 8.8% helium content

calculated.

For

Fund Top Performer

Golden Rim Resources (GMR.ASX) share price

rose 41% in December. GMR is completing

resource drilling at the Kada project in Guinea, west

Africa, where the company is earning a 75%

interest. Best results include 96m at 3.3 g/t Au. An

initial resource is expected in Q1 2022.

December 2021

LRF Portfolio Value by Project Stage

31 December 2021

70%

60%

50%

40%

30%

20%

10%

0%

Company

Commodity

% of Gross

Investments

Cash

Cash

6.7%

Predictive

Gold

8.6%

Discovery

Genesis Minerals

Gold

6.9%

Musgrave

Gold

6.6%

Minerals

De Grey

Gold

4.9%

Mining

Azure Minerals

Nickel

3.9%

Caravel

Copper

3.5%

Talon Metals

Nickel

3.3%

Blue Star Helium

Helium

2.8%

South Harz

Potash

2.5%

Potash

Red Dirt Metals

Lithium

2.3%

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MONTHLY UPDATE

December 2021

Lowell Resources Funds Management Ltd. LRT

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Performance Comparison - December

2021

Over the past 12 months, the Lowell Resources Fund's change in underlying net asset value per unit

(inclusive of distributions and after fees and expenses) was 36.4%, and 85.1% pa over two years. The

Fund has outperformed the benchmark S&P/ASX Small Resources Index (XSRD) and the ASX 200

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Index over one, two, five and ten years.

Total Portfolio

LRT Change in

S&P/ASX Small

ASX 200 Index TR

Performance to 30

NAV per unit incl

Resources Index

December 2021

distributions

(XSRD)

12 months

36.4%

+27.5%

17.2%

2 years p.a.

85.1% pa

+24.3% pa

9.0% pa

personal

5 years p.a.

23.7% pa

+13.3% pa

9.8% pa

10 years p.a.

15.4% pa

-2.0% pa

10.8% pa

The LRT.ASX traded unit price at the end of December was $1.75/unit, compared to $1.80/unit at the end

of November.

Market Notes

• U.S. inflation hit a 39 year high of 6.8% in November, on the same day the S&P 500 equity index

hit its 67th all-time high of 2021. The US Federal Reserve announced it would end its asset-

buying program earlier, and signaled it favours raising interest rates in 2022 at a faster pace than

expected. Elsewhere, the Bank of England raised rates to 0.25% from historic lows of 0.10% amid

reports of improving labour market and strong inflation. Early in December, the US jobless claims

dropped to the lowest level since 1969.

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• Supply chain bottlenecks continued to impact markets. As at 13 December, a record 101 container

ships were queueing off Los Angeles and Long Beach ports.

US President Joe Biden still requires the support of key Democrat Senator Joe Manchin to pass

his US$1.7tn "Build Back Better" stimulus plan. Manchin has refused to vote for the spending plan

citing the risk of cost blow outs and its effect on inflation.

• US$ gold finished the 2021 calendar year at US$1,820/oz, up 2.5% on the month, but down from

US$1,890/oz over the year.

• Real US interest rates dropped back below negative 1.0%, before beginning to rise in the new

year.

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For personal use only

MONTHLY UPDATE

December 2021

Lowell Resources Funds Management Ltd. LRT

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Disclaimer

Lowell Resources Fund published this content on 13 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2022 03:40:08 UTC.